Profit bonanza for Macquarie bank
Macquarie Bank has posted another record profit, rising 48 per cent to $494 million for the year to March. The full-year dividend was up from 93 cents to $1.22, 90 per cent franked. Foreign income increased to 31 per cent of total revenue.
While chairman David Clarke said he was delighted with the results, the market was not so impressed and sliced 96 cents off the bank's stock, sending it down to $33.97. CEO Allan Moss admitted the next 12 months may not be as favourable for Macquarie on international investment markets, citing the ballooning US budget and trade deficits. But on the local residential property market he was not as pessimistic and said he doesn't expect a crash, although there will be “some weakness, particularly in investment property”.